Home » Gold Asian Market: Spot gold falls below the $1,800 mark, although the Fed’s road to raising interest rates is slow and non-stop Provided by Investing.com

Gold Asian Market: Spot gold falls below the $1,800 mark, although the Fed’s road to raising interest rates is slow and non-stop Provided by Investing.com

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Gold Asian Market: Spot gold falls below the $1,800 mark, although the Fed’s road to raising interest rates is slow and non-stop Provided by Investing.com
© Reuters. Gold Asian Market: Spot gold falls below the $1,800 mark

Investing.com – Gold prices fell in Asian afternoon trading on Thursday (15th), after the Federal Reserve’s hawkish stance was stronger than market expectations, and the prospect of continued rise in interest rates cast a cloud over the gold trend.

However, gold prices have still risen so far this week, as data showed a further slowdown in November, pushing long positions above the $1,800 resistance level.

As of 14:08 Beijing time (01:08 a.m. Eastern Time), Investing.com Commodity Markets showed that it fell $13.93, or about 0.11%, to $1793.44 per ounce; the price fell $15.25, or about 0.84%. , at $1,803.45 an ounce.

On Wednesday (14th), Federal Reserve Chairman Jerome Powell (Jerome Powell) warned that the peak of US interest rates may be higher than previously expected, despite the Fed.

Rising interest rates have pushed up the opportunity cost of holding non-yielding assets such as gold and have been the biggest headwind for the gold market this year. With another rate hike on Wednesday, the Fed has raised its benchmark interest rate by 425 basis points this year and is now at its highest level since the 2008 financial crisis.

Although high interest rates have curbed inflation and pushed the inflation rate further away from the 40-year high, the level is still far higher than the Fed’s 2% annual rate target, so Powell raised the terminal interest rate forecast from previous expectations.

The Fed also reiterated its willingness to curb US economic growth and the job market in order to reduce inflation.

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Analysts at ING said, “While the market may think that inflation is on the verge of death, the Fed certainly does not. The Fed wants to see substantial evidence that inflation is slowing, not just a month or two of core inflation. lower than market expectations.”

Other precious metals were also flat, while risk-driven assets such as stocks and currencies also retreated. Among industrial metals, they fell 0.51 percent to $3.8433 a pound. Copper prices have been hit by the prospect of a possible slowdown in global economic growth, especially after the Federal Reserve signaled that the U.S. economy may be cooling.

[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]

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Compiler: Liu Chuan

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